Fast-growing online fashion retailer Boohoo (LON:BOO) reported impressive results on Wednesday, with sales up 51 percent in the year to February-end.
Sales hit £295 million during the course of the 2016 financial year, upping the retailer’s pre-tax profit by 97 percent to £31 million.
The year was a busy one for the company, a firm favourite for customers between the ages of 16 and 24 due to its fast reaction to trends and cheap prices. Boohoo took over smaller rival Pretty Little Thing and US brand Nasty Gal in January and February respectively, leaving the group with a strong balance sheet and net cash of £58.4 million.
A successful social media campaign took the group’s active customers up to 1.3 million during the year, with adjusted EBITDA at £35.6 million. Profit before tax hit £30.9 million, almost doubling the previous year’s figure of £15.7 million.
Joint CEOs Mahmud Kamani and Carol Kane called the year a “momentous” one for the brand, adding that both new acquisitions have “huge potential”, representing “a step change in the size, structure and operation of the group”.
They added: “We are confident that our expertise combined with the strength and following of our new complementary brands will greatly enhance the group’s future growth and profitability.”
Looking forward, Kamani and Kane said that Trading in the first few weeks of the 2018 financial year had “made a promising start”, and that they are “excited about the prospects of our development into a multi-branded business.”
Boohoo shares are currently trading up 1.02 percent at 187.90 (1015GMT).